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+Q1. Calculate rebate on bill discounted as on 31st March 2019

Date of bill Amount Period (months) Discounted @ (%)

24th Feb 2019 3,000 2 12.00
28th Feb 2019 5,000 3 12.50
15th Feb 2019 2,500 2 12.00

Q 2.
From the following particulars prepare Profit & Loss Account of Glory Bank Ltd for the year
ended 31st March 2020.

Particulars Amount
Interest on loan (Cr) 3,49,000
Interest on Fixed Deposits 3,65,000
Rebate on bill discounted 48,000
Commission charged to customers 9,100
Salaries 1,55,000
Discount on bill discounted (net) 1,94,000
Interest on cash credit 2,24,000
Amount charged on current accounts 12,000
Rent & taxes 18,000
Interest on overdraft 1,28,000
Director’s fees 2,000
Auditor’s fees 2,200
Interest – saving Accounts 69,000
Postage & telegram 1,500
Printing & stationery 3,900
Sundry charges 1,800
Provide Rs. 80,000 for taxation.
Q.3.
From the following particulars prepare Profit & Loss Account of Trinity Bank Ltd for the year
ended 31st March 2020.

Particulars Amount
Interest on loans (cr) 25,90,000
Interest on fixed deposits 27,50,000
Rebate on bill discounted 4,90,000
Commission (cr) 82,000
Salaries and allowances 5,40,000
Discount on bill discounted (net) 14,60,000
Interest on cash credit 22,30,000
Interest on overdraft 15,40,000
Rent and taxes 1,80,000
Director’s fees 30,000
Auditor’s fees 12,000
Interest on saving bank accounts 11,00,000
Postage and telegram 14,000
Printing and stationery 29,000
Sundry charges 17,000

Bad debts amounted to Rs. 4,00,000.

Q. 4.
Following figures are extracted from the books of New Era Bank Ltd as on 31 st March 2020

Particulars Amount
Interest & Discount received 37,05,738
Interest paid on deposits 20,37,452
Issued & subscribed capital 10,00,000
Salaries and allowances 2,00,000
Director’s fees 30,000
Rent & Taxes paid 90,000
Postage & telegram 60,286
Commission, brokerage and exchange (cr) 1,90,000
Rent received 65,000
Profit on sale of investment 2,00,000
Depreciation on banks assets 30,000
Stationery 40,000
Preliminary expenses ( written off) 25,000
Auditor’s fees 5,000

Additional information :
1. A customer to whom a sum of Rs. 10,00,000 was advanced has become insolvent
and it is expected that only 50% can be recovered from his estate.
 2. There are other debts for which a provision of Rs. 1,50,000 was found necessary.
3. Rebate on bill discounted on 31.3. 2019 was Rs. 12,000 and on 31 st March 2020 was
Rs. 16,000.
4. Provide Rs. 6,50,000 for income tax.
5. Directors proposed to declare 10% dividend.
You are required to prepare Profit & Loss Account of New Era Ltd for the year ended 31 st
March 2020.
Q.5
From the following figures extracted as on 31st March 2020 from the books of Rohtas Bank
Ltd , prepare Profit & Loss Account .

Particulars Amount
Exchange (credit) 17,000
Discount earned 65,000
Interest on customer’s deposits 70,900
Interest paid on borrowings 15,100
Salary (including Rs. 9,000 of Managing 61,600
Director)
Taxes 10,000
Insurance 15,330
Lighting 5,000
Local committee fees and allowances 2,000
Director’s fees 4,790
Law charges 8,000
Interest on advances and investments 2,39,500
Commission earned 95,000
Stationery & Printing 30,000
Other revenue expenditure 40,300
Allowances to employees (Excluding Rs. 32,080
5,000 paid to Managing Director)
Rent received 20,200
Rent paid 53,000
Brokerage earned 28,000
Miscellaneous revenue earning 39,000
Advertisements 15,000
Stamps 2,500
Postage & telegram 16,300
Repairs to Bank property 1,000
Depreciation 12,000
Loss on sale of investment 2,500

A provision of Rs. 16,500 is to be made for bad and doubtful debts.

Q.6.
Following is the trial balance of Poona City Bank Ltd. as on 31 st March 2020.

Particulars Debit Credit

Share Capital 3000 Shares of Rs. 100 each 300000
Statutory Reserve 400000
Deposits- Fixed 278000
Savings 450000
Current 374000
Cash in hand 290000
Cash with RBI 420000
Interest and Discount 300000
Commission and Brokerage 50000
Interest on Fixed Deposits 30000
Interest on savings deposits 32,500
Salaries ( including 12000 to manager ) 131000
Rent, Insurance and Taxes 4000
Postage and Telegram 900
Printing and stationery 7000
Audit Fees 4000
Depreciation 3300
Investment in shares 84000
Loans, CC and OD 490000
Bills purchased and discounted 160000
Government bonds 180000
Furniture 40000
Premises 300000
Branch adjustment account 24700
TOTAL 2176700 2176700
Additional information
1. Rebate on bills discounted Rs. 27000
2. Make a provision for Bad and Doubtful Debts Rs. 11000
3. Acceptances on behalf of customers Rs. 80000
You are required to prepare Profit and Loss Account for the year ended 31 st March 2019 and
Balance Sheet as on that date.
Q.7
Following is the trial balance of Baramati Bank Ltd. as on 31 st March 2019. You are required
to prepare Profit and Loss Account and Balance Sheet as on above date.

Particulars Debit Credit

Share Capital 20000 Equity Shares of Rs. 100 10,00,000
each, Rs. 50 paid up)
Profit and Loss Account 1st April 18 81500
Deposits- Fixed 23,43,000
Savings 11,07,000
Current 21,44,000
Directors Fees 9300
Audit Fees 8800
Furniture ( Cost Rs. 100000) 85900
Interest and Discount 7,04,000
Interest paid 4,00,400
Commission and Exchange 2,03,000
6% Government Bonds 10,40,000
Inv in Gold fund 8,00,000
Branch Adjustment Account 2,04,000
Postage and Printing 6900
Premises ( cost rs. 1850000) 17,03,000
Salaries ( including salary of Rs. 25000 of 67000
Manager)
Law Charges 5300
Provident Fund Contribution 11200
Cash in Hand 2,07,000
Bills discounted and Purchased 67000
Unexpired insurance 2700
Statutory reserve fund 85000
Loans, Cash Credits and Overdrafts 30,49,000

TOTAL 7667500 7667500

Following additional information:

1. Rebate on bills discounted amounted to rs. 7100
2. Provide RS. 38500 for doubtful debts
3. The bank has accepted bills for collection worth rs. 2,50,000 on behalf of customers
against the securities of rs. 3,10,000 lodged with the bank
4. Provide depreciation on premises rs. 73000 and on furniture rs. 5900
5. Provide for Taxation rs. 7500
Q.8
The following is the trial balance of Someshwar Bank Ltd. as on 31 st March 2019. You are
required to prepare Profit and Loss Account and Balance Sheet as on that date.

Particulars Debit Credit

Share Capital 100000 Equity Shares of Rs. 10 1000000
each, fully paid)
Reserve Fund 500000
Loans, Cash Credits and Overdraft 570000
Premises 100000
Non- Banking Assets 800000
Current Deposits 200000
Fixed Deposits 250000
Salaries 56000
General Expenses 54800
Rent, rates and Taxes 4600
Savings Bank Account deposits 100000
Director’s fees 3600
Profit and Loss Account 32000
Interest and Discount 256000
Stock of stationery 17000
Bills purchased and discounted 92000
Interim Dividend paid 34000
Recurring deposits 40000
Inv in Shares 100000
Cash in hand and with RBI 386000
Money at call and short notice 160000
TOTAL 2378000 2378000
Adjustments:
1. The authorized share capital of the bank is Rs. 200000 Equity shares of Rs. 10 each
2. Provision for Bad and Doubtful debts is required to be made Rs. 10000
3. Rebate on bills discounted amounted to Rs. 760
4. Interim dividend declared was 4% actual.
5. Endorsement made on behalf of customers rs. 230000
6. Rs. 20000 were added to the premises during the year and depreciation is allowed at
5% p.a. on the opening balance.
March 2019 and Balance Sheet as on that date as per Banking Regulation Act, 1949.